Viewing the 'Personal Finance 101' Category

Last week I started teaching Dave Ramsey's "Generation Change" curriculum to the teen Sunday School class. Now, if you knew me, it would be a big surprise that I would volunteer to do this because I am a very quiet person that rarely, if ever, speaks up in class. But this is such an important topic that most kids are not being taught at school or at home, that I had a burden to do it. I am hoping that they will finish this class with a sense of how to manage their finances while in college and as adults.

So far, the kids seem to be enjoying the class. The first lesson focuses on materialism and how we are more than just what we own. Next week we will get into the basics of personal finance and budgeting.

Last week I was extremely nervous, but this week I was surprised to find that I was fine. It doesn't make much sense since last week the class time was taken up mostly with the video part of the lesson and this week I had to talk the entire time. I'm hoping that each week gets easier. It's a subject I feel passionate about, so I think that helps tremendously. I am hoping to help just one teen avoid learning lessons the hard way, like we had to.

We attended the live Money Map simulcast at our church today. It began at 9:30 and ended at 4:30 with an hour break for lunch and 2 breaks of 25 minutes each.

I have to say that by lunch I was extremely frustrated. The speakers they had were good, but when we were going to get to the 'meat' of the material and get practical instructions that would benefit us? I really didn't feel that I needed it for me, but for a friend that attended with me that is in desparate need of a budget. I couldn't help but think that if this were Financial Peace University Dave would already have everyone on a budget and a fully funded baby emergency fund.

Finally, after lunch they got down to specifics. It still wasn't as detailed as I would have liked, but a category plan (budget) was discussed and the link to Crown Money Map that will walk people through setting one up.

I guess that the day was worth the $25 that DH and I paid to attend, but I have to say that I was disappointed. I didn't learn anything new, but DH did. At least now he knows why I have things set up as I do. My friend was satisfied. She said she now knows that she needs to have a spending plan and the basics of how to accomplish that.

For beginners to financial planning, I think this would be good. If you're a veteran at personal finance though, you probably won't be impressed.

I guess I just like Dave Ramsey's approach to finances better. I like the aggressiveness and step-by-step detail he provides. I'll be searching for a Financial Peace University near us.

This Saturday DH and I have the opportunity to attend a simulcast of Money Map Live by Crown Financial Ministries at our church. This is an all-day event that will feature Howard Dayton, Les & Leslie Parrott, Ron Blue, Sharon Epps, Chuck Bentley & James Dobson.

I have been looking forward to this ever since it was announced. I talked DH into going even though he's sure he's going to be bored to death. What could be worse than sitting and listening to people talk about money all day long? LOL!

Now if I could just talk the church into hosting a Financial Peace University by Dave Ramsey!

When working through your personal financial plan you should set 3 types of financial goals:

Short-term goals: typically goals that you strive to reach in a year or less (small debt pay-off, vacation trips, etc.)

Intermediate goals: aim for a time period of 2 to 5 years (paying off smaller loans, saving up a down-payment for a newer car, etc.)

Long-term goals: these goals can be achieved in 2 to 5 years (college savings, retirement funding, etc.)

All of these goals should be worked into your financial plan. As you achieve the short-term goals you'll earn a sense of satisfaction and it will give you the drive you need to accomplish your longer term goals.

Personal financial planning is the process of managing your money to reach economic satisfaction. This process gives you control of your finances. By having a financial plan you enhance your quality of life and increase your satisfaction because economic uncertainties about your future needs and resources are minimized.

There are 6 steps to personal financial planning. They are:

#1: Determining where you stand currently with your finances

#2: Developing financial goals

#3: Strategizing different courses of action

#4: Evaluating your alternatives

#5: Creating and putting your financial plan into action

#6: Periodically reviewing the plan to see if it's working for you

Research has shown that people with their own financial plan save more money than those who haven't taken the time to develop a plan.